Association for Mining Exploration Wants Province to Dig Deeper For Dollars

Wednesday, March 03, 2010 03:58 AM

The Association for Mineral Exploration British Columbia (AME BC) didn't break out any champagne following the release of the Provincial budget. The Association is calling on the BC Government to ensure the staffing and funding resources critical to the development of one of the province’s most successful wealth and job generating sectors, mining and mineral exploration, are maintained.

“Over the next three years the Ministry of Finance expects to earn $1.15 billion in revenue from the metal, coal and minerals sector,” said AME BC President & CEO Gavin C. Dirom. “Yet despite this significant revenue generation—which helps pay for health and education services in the province—the government has chosen to cut the budget of the Ministry of Energy, Mines & Petroleum Resources by approximately 14%. This follows a 4% cut in 2009.”

Cutting $13 million over the next three years out of the budget of a Ministry which is expected to generate $2.3 billion in 2010/11 alone is of key concern to the mineral exploration sector.

Mineral explorers in BC certainly welcome the three-year extension of the BC Mining Flow Through Share Tax Credit through to 2013 and the continued commitment to the electrification of Highway 37. AME BC also appreciates the BC government’s concerted efforts to reduce duplication of effort in permitting and environmental assessment processes with the Federal Government.

AME BC is once again calling on the Province to reinvest in Geoscience BC and the BC Geological Survey. “These core geoscience services are the essential knowledge infrastructure of our sector and are key to the discovery and development of future revenue generating mineral properties,” added Dirom. “As the mineral resources belong to every British Columbian, government must invest in its own knowledge of the province’s geology or risk losing huge potential economic generating opportunities that will help BC’s economy recover and return the province to prosperity.”

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Posted on Wednesday, March 03, 2010 03:58 AM in News by 250 News

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Comments

Posted by: Loki on March 3 2010 9:52 AM

We are to spend tax payer dollars so the province can let a private company (foreign owned?) profit?

Is that like counting the chickens for the fox?

Posted by: explorer on March 3 2010 11:32 AM

Er...not exactly Loki. Do the math. The Ministry of Energy, Mines & Petroleum Resources has a budget of under $60 million per year. Yet revenues from that sector for government are estimated at over $2.2 billion for next year. Not including taxes from employees etc. Clearly the sector is paying its own way.

What we need is the government to count what it owns (the minerals belong to them). For example how can government do land-use planning if it doesnt know where its best and worst mineral resources are?

How will First Nations know the value of the subsurface land they claim if no one spends the money to understand the geology?

If permits, first nations consultation requirements or other delays are occuring because the ministry is understaffed...then the government loses that tax revenue. Its pretty simple. If you want to be the regulator, you need to do just that..regulate in a timely, effective and consistent manner.

Posted by: Loki on March 3 2010 1:53 PM

doing the math:
Government spends $60 million in tax payer dollars

Corporation generate revenues of 2.2 billion that are taxed at the very generous corporate rate of 18% then 16.5% in 2011 http://www.kpmg.ca/en/services/tax/documents/2010_2011%20General_English_4Q%202009.pdf is a return to the tax coffers of $396,000,000.00

My approach is simple layman approach. Is it close?

Posted by: NMG on March 3 2010 7:17 PM

The article says the Province is earning 1.15B over the next three years, then it says they expect to earn 2.3B in 2010/2011 alone. Which is it?

Also, are we talking about income taxes or exploration royalties? We know it won't be consumption taxes because what the mining sector would've paid in PST will now be shifted to the consumer in the form of HST, LOL :)